Do you want to know whether or not you should buy or lease your office equipment? It is a question that a lot of new business owners ask themselves. Much of it depends on your current financial situation. If you lease your business equipment then it will save you money if you are on a tight budget. Buying office equipment is better for businesses who are established and do not plan on switching out equipment on a regular basis. Here are some of the pros and cons to buying and leasing office equipment.
Pros to Leasing
Leasing is the best choice for start-up companies who are looking to cut costs. It will ultimately cost less money up front and get your business up and running faster. When you lease equipment you don’t always need to have a down payment which keeps your cash flow in line.
Payments that you make on your lease can be tax deductible. You can typically deduct these expenses and decrease the total cost of your lease. Also when you lease equipment, it is much easier to upgrade to something better later. If you purchase office equipment that becomes outdated you can upgrade to something that will better fit your needs. You will also not have to deal with obtaining a loan which typically do not have flexible terms like lease agreements.
Cons to Leasing
There are only a couple of cons to leasing your office equipment. For starters, you do not own the equipment which can be a problem for some business owners. You end up paying much more in the long run but leasing can simply be a short-term solution to your problem. The good news is that you can always lease and then decide to purchase outright later on.
One of the biggest pitfalls to purchasing equipment outright is that you are stuck with outdated equipment. If you use a lot of computers or other technology-related equipment, it can easily become outdated even within just a year or so. When you lease your office equipment, you can upgrade later on to something more modern.
When it comes down to the decision to buy or lease office equipment it really comes down to your particular needs and budget. There are pros and cons to doing both so it depends on whether you are a start-up business or an established business. Weigh out the pros and cons to both buying and leasing office equipment and you are sure to find one that is the right fit. Visit here for more details.